Credit follows verified sell-through
Eligible customer sales fulfilled through the Stockist’s serialized inventory contribute to the Stockist’s option grant-credit ledger.
The proposed Stock Option Incentive gives Founding Stockists a separate path to benefit from the longer-term enterprise value created by verified customer sales moving through their local supply chain.
Networkers may sell without holding inventory. The Stockist makes that possible by funding, importing, storing and fulfilling products locally. The option program recognizes the enterprise value of that supply-chain contribution.
Eligible customer sales fulfilled through the Stockist’s serialized inventory contribute to the Stockist’s option grant-credit ledger.
The Stockist can benefit from sales generated throughout the local network without employing or paying a conventional salaried sales force.
The 20% Stockist product margin supports current cash flow. The separate option program recognizes verified longer-term market creation.
At US$100,000 of verified Net Eligible Sales, the Stockist accrues US$20,000 of grant credit. At US$500,000, the standard cumulative grant-credit ceiling of US$100,000 is reached.
Grant credit determines the potential number of options. It is not cash or a free share, and the Stockist must exercise vested options at the approved exercise price before shares are issued.
Change the verified-sales and reference-price assumptions to understand how grant credit may translate into an option quantity. The illustration does not predict future share value.
The standard program remains within its US$100,000 cumulative cap. Final option quantity, exercise price, vesting and grant date require formal approval and signed documents.
The same verified-sale architecture that protects commissions also protects the option program.
Accrual and an actual option grant are deliberately separate stages.
These sections keep the commercial invitation easy to understand while preserving the mechanics that matter.
Grant credit is a performance measure used to determine the potential number of options. Under the proposed standard formula, grant credit equals 20% of verified Net Eligible Sales, capped at US$100,000. Option count equals approved grant credit divided by the Board-approved option reference price.
An option gives the Stockist the contractual right to purchase a stated number of shares at the approved exercise price before expiry. No shareholder rights arise until the option is validly exercised and the issuing company actually issues the shares.
The proposed aggregate program ceiling is the earlier of US$1 million in aggregate standard Stockist Grant Credit or a Board-approved fully diluted ownership ceiling, provisionally 3%–5%. The final issuing company, available share reserve and required Board and shareholder approvals must be confirmed before grants are made.
A Stockist exceeding US$1 million of cumulative verified Net Eligible Sales and demonstrating sustainable market, logistics and compliance capacity may be considered for a separate Strategic Master Distributor appointment.
If separately appointed and approved, the proposed additional grant credit is 5% of incremental Net Eligible Sales above US$1 million, capped at US$250,000 additional credit. Combined with the US$100,000 standard cap, total potential proposed grant credit may reach US$350,000.
No. The program is separate from the MLM compensation plan. Recruitment, enrollment, unsold inventory, internal transfers and replenishment purchases do not create grant credit. Credit arises only after qualifying external customer revenue is delivered, collected and verified.
The table shows the proposed formula before conversion into an option quantity.
| Cumulative Net Eligible Sales | Standard Grant Credit | Remaining Standard Capacity |
|---|---|---|
| US$25,000 | US$5,000 | US$95,000 |
| US$100,000 | US$20,000 | US$80,000 |
| US$250,000 | US$50,000 | US$50,000 |
| US$500,000 | US$100,000 maximum | Standard program fully earned |
The program can be commercially meaningful without promising a particular share value or liquidity event.
Discuss the territory, initial inventory level, supply-chain responsibilities and proposed Stock Option Incentive relevant to your market.